Rep. Franco Coladipietro
Filed: 3/5/2012
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1 | AMENDMENT TO HOUSE BILL 5189
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2 | AMENDMENT NO. ______. Amend House Bill 5189 by replacing | ||||||
3 | everything after the enacting clause with the following:
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4 | "Section 5. The State Comptroller Act is amended by | ||||||
5 | changing Section 9.03 as follows:
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6 | (15 ILCS 405/9.03) (from Ch. 15, par. 209.03)
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7 | Sec. 9.03. Direct deposit of State payments. | ||||||
8 | (a) The Comptroller, with the
approval of the State | ||||||
9 | Treasurer, may provide by rule or regulation for the
direct | ||||||
10 | deposit of any payment lawfully payable from the State Treasury | ||||||
11 | and in
accordance with federal banking regulations including | ||||||
12 | but not limited to
payments to (i) persons paid from personal | ||||||
13 | services, (ii)
persons receiving benefit payments from the | ||||||
14 | Comptroller under the State pension
systems, (iii) individuals | ||||||
15 | who receive assistance under Articles III, IV,
and VI of the | ||||||
16 | Illinois Public Aid Code, (iv) providers of services under
the |
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1 | Mental Health and Developmental Disabilities
Administrative | ||||||
2 | Act, (v)
providers of community-based mental health services, | ||||||
3 | and (vi) providers of
services under programs administered by | ||||||
4 | the State Board of Education, in the
accounts of those persons | ||||||
5 | or entities maintained at a bank, savings and loan
association, | ||||||
6 | or credit
union, where authorized by the payee. The Comptroller | ||||||
7 | also may deposit
public aid payments for individuals who | ||||||
8 | receive assistance under Articles
III, IV, VI, and X of the | ||||||
9 | Illinois Public Aid Code directly into an
electronic benefits | ||||||
10 | transfer account in a financial institution approved by
the | ||||||
11 | State Treasurer as prescribed by the Illinois Department of | ||||||
12 | Human
Services
and in accordance with the rules and regulations | ||||||
13 | of that Department and the
rules and regulations adopted by the | ||||||
14 | Comptroller and the State Treasurer.
The Comptroller, with the | ||||||
15 | approval of the State Treasurer, may provide by
rule for the | ||||||
16 | electronic direct deposit of payments to public agencies and | ||||||
17 | any
other payee of the State. The electronic direct
deposits | ||||||
18 | may be made to the designated account in those financial | ||||||
19 | institutions
specified in this Section for the direct deposit | ||||||
20 | of payments. Within 6 months
after the effective date of this | ||||||
21 | amendatory Act of 1994, the Comptroller shall
establish a pilot | ||||||
22 | program for the electronic direct deposit of payments to
local | ||||||
23 | school districts, municipalities, and units of local | ||||||
24 | government.
The payments may be made without the use of the | ||||||
25 | voucher-warrant system,
provided that documentation of | ||||||
26 | approval by the Treasurer of each group of
payments made by |
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1 | direct deposit shall be retained by the Comptroller. The
form | ||||||
2 | and method of the Treasurer's approval shall be established by | ||||||
3 | the
rules or regulations adopted by the Comptroller under this | ||||||
4 | Section. | ||||||
5 | (b) Except as provided in subsection (b-5), all All State | ||||||
6 | payments for an employee's payroll or an employee's expense | ||||||
7 | reimbursement must be made through direct deposit. It is the | ||||||
8 | responsibility of the paying State agency to ensure compliance | ||||||
9 | with this mandate. If a State agency pays an employee's payroll | ||||||
10 | or an employee's expense reimbursement without using direct | ||||||
11 | deposit, the Comptroller may charge that employee a processing | ||||||
12 | fee of $2.50 per paper warrant. The processing fee may be | ||||||
13 | withheld from the employee's payment or reimbursement. The | ||||||
14 | amount collected from the fee shall be deposited into the | ||||||
15 | Comptroller's Administrative Fund. | ||||||
16 | (b-5) If an employee indicates in writing to the paying
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17 | State agency or the Comptroller that it is his or her desire to | ||||||
18 | have his or her
payroll or expense reimbursement deposited to a | ||||||
19 | secure check account,
then the Comptroller shall disburse those | ||||||
20 | amounts in that form. For the purposes of this Section, "secure | ||||||
21 | check account" means an account established with a financial | ||||||
22 | institution for the employee that allows the dispensing of the | ||||||
23 | funds in the account through a third party who dispenses to the | ||||||
24 | employee a paper check. | ||||||
25 | (c) All State payments to a vendor that exceed the | ||||||
26 | allowable limit of paper warrants in a fiscal year, by the same |
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1 | agency, must be made through direct deposit. It is the | ||||||
2 | responsibility of the paying State agency to ensure compliance | ||||||
3 | with this mandate. If a State agency pays a vendor more times | ||||||
4 | than the allowable limit in a single fiscal year without using | ||||||
5 | direct deposit, the Comptroller may charge the vendor a | ||||||
6 | processing fee of $2.50 per paper warrant. The processing fee | ||||||
7 | may be withheld from the vendor's payment. The amount collected | ||||||
8 | from the processing fee shall be deposited into the | ||||||
9 | Comptroller's Administrative Fund. The Office of the | ||||||
10 | Comptroller shall define "allowable limit" in the | ||||||
11 | Comptroller's Statewide Accounting Management System (SAMS) | ||||||
12 | manual, except that the allowable limit shall not be less than | ||||||
13 | 30 paper warrants. The Office of the Comptroller shall also | ||||||
14 | provide reasonable notice to all State agencies of the | ||||||
15 | allowable limit of paper warrants. | ||||||
16 | (d) State employees covered by provisions in collective | ||||||
17 | bargaining agreements that do not require direct deposit of | ||||||
18 | paychecks are exempt from this mandate. No later than 60 days | ||||||
19 | after the effective date of this amendatory Act of the 97th | ||||||
20 | General Assembly, all State agencies must provide to the Office | ||||||
21 | of the Comptroller a list of employees that are exempt under | ||||||
22 | this subsection (d) from the direct deposit mandate. In | ||||||
23 | addition, a State employee or vendor may file a hardship | ||||||
24 | petition with the Office of the Comptroller requesting an | ||||||
25 | exemption from the direct deposit mandate under this Section. A | ||||||
26 | hardship petition shall be made available for download on the |
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1 | Comptroller's official Internet website. | ||||||
2 | (e) Notwithstanding any provision of law to the contrary, | ||||||
3 | the direct deposit of State payments under this Section for an | ||||||
4 | employee's payroll, an employee's expense reimbursement, or a | ||||||
5 | State vendor's payment does not authorize the State to | ||||||
6 | automatically withdraw funds from those accounts. | ||||||
7 | (f) For the purposes of this Section, "vendor" means a | ||||||
8 | non-governmental entity with a taxpayer identification number | ||||||
9 | issued by the Social Security Administration or Internal | ||||||
10 | Revenue Service that receives payments through the | ||||||
11 | Comptroller's commercial system. The term does not include | ||||||
12 | State agencies. | ||||||
13 | (g) The requirements of this Section do not apply to the | ||||||
14 | legislative or judicial branches of State government.
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15 | (Source: P.A. 97-348, eff. 8-12-11.)
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16 | Section 10. The Department of Employment Security Law of | ||||||
17 | the
Civil Administrative Code of Illinois is amended by adding | ||||||
18 | Section 1005-200 as follows: | ||||||
19 | (20 ILCS 1005/1005-200 new) | ||||||
20 | Sec. 1005-200. Benefit payment method. | ||||||
21 | (a) The Department shall provide to each claimant, upon
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22 | filing a claim for benefits, written notice of benefit payment
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23 | options, which shall include the following: prepaid debit card, | ||||||
24 | direct
deposit, and secure check account. The written notice |
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1 | shall require the
claimant's signature to be kept on record by | ||||||
2 | the Department in
order to designate his or her benefit payment | ||||||
3 | method as prepaid
debit card, direct deposit, or secure check | ||||||
4 | account. | ||||||
5 | (b) The Department shall afford a claimant the opportunity
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6 | to change, in writing, his or her benefit payment option at any
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7 | time. | ||||||
8 | (c) Any claimant who has filed a claim for benefit and is
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9 | either awaiting a determination by the Department or is
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10 | currently receiving benefits on or after the effective date of | ||||||
11 | this
Section shall be provided written notice pursuant to | ||||||
12 | subsection
(a) of this Section within 30 days after that date | ||||||
13 | and shall be
afforded the opportunity at any time to change his | ||||||
14 | or her benefit payment
option pursuant to subsection (b) of | ||||||
15 | this Section. | ||||||
16 | (d) For the purposes of this Section, "secure check | ||||||
17 | account" means an account established with a financial | ||||||
18 | institution for the claimant that allows the dispensing of the | ||||||
19 | funds in the account through a third party who dispenses to the | ||||||
20 | claimant a paper check.
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21 | Section 99. Effective date. This Act takes effect 30 days | ||||||
22 | after becoming law.".
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